Nike, Reebok Settle Lawsuit Over Tim Tebow Jerseys

A judge recently extended a temporary restraining order into a permanent injunction, having decided Nike had a likelihood of success on the merits of their lawsuit. Reebok had to recognize they had no chance of winning. Nike likely settled this lawsuit ahead of trial to avoid any headaches that can come with a jury trial.

A week after Nike filed suit against Reebok for unauthorized production and sales of Tim Tebow Jets jerseys, a judge has extended a temporary restraining order against Reebok pending the outcome of the lawsuit. Shortly after filing the lawsuit, Nike applied for and was granted the order restraining Reebok from producing or selling any of the jerseys.

Reebok was allowed to respond to the TRO, but the judge’s ruling indicates Nike successfully provided proof of a probability of success on the merits. Although Nike met this threshold, it does not end the case. Rather, Reebok simply cannot produce or sell the jerseys while the case continues.

This is not a final ruling, but rather a temporary measure while the case is assessed on its merits. The order is issued pending a hearing on an injunction that would permanently halt Reebok’s production of jerseys. The order is based off the information provided by Nike, which means Reebok still has an opportunity to respond to the allegations.

Given the licensing dates specified in the complaint, it should be a fairly straight-forward process. If Reebok did not have the proper permission from Tim Tebow or the NFL Players Association, it would not be allowed to manufacture these jerseys. It is unlikely Reebok will admit to any sort of purposeful wrongdoing given the kind of punitive damages it could face. However, Reebok could try to play it off as an innocent mistake due to some sort of confusion of dates.